South Africa’s tourism industry is grappling to meet new European Union (EU) regulations that demand rigorous sustainability standards if businesses want to be able to access the continent’s tourist market.
The EU’s Empowering Consumers for the Green Transition Directive and the Green Claims Directive aim to ensure businesses are being transparent and accurate when directly or indirectly marketing their products or services as “green” or “sustainable” to EU consumers.
The directives aim to stop companies from greenwashing by requiring them to back up claims like “sustainable”, “responsible”, “green”, “eco-friendly” or “carbon-neutral” with solid proof through EU-approved third-party sustainability certifications.
The goal is to help consumers make informed choices by ensuring the sustainability labels they see are reliable while also encouraging businesses worldwide, especially those selling to EU markets, to adopt real, measurable environmental and social sustainability standards.
But local tourism experts warn of significant challenges for local businesses ahead as the September 27, 2026, deadline looms.
How ready is the industry?
The current state of preparedness is shaky at best, according to Melissa Foley, Impact Lead for Community and Conservation at Africa’s Eden Tourism Association and Founding Director of All About Africa Sustainability Consulting.
Foley is forming multiple working groups of relevant stakeholders within the supply chain to rally local businesses to meet the new EU requirements. But, she warns, African tourism businesses are “not at all ready” for the impending changes.
“Not only are they not really prepared, they’re either completely unaware or in denial about it – not understanding that, although it’s EU and global regulations, it directly impacts them as part of the supply chain,” Foley says.
“I use the analogy that there’s an iceberg ahead and, just because they can’t see it or don’t believe icebergs are real, doesn’t mean it’s not there and they are heading directly for it.”
However, she notes a shift in recent months as international buyers, particularly from the EU, begin auditing suppliers.
Potential pitfalls of non-compliance
The stakes are high, regardless of business size. Non-compliance risks “loss of market access” – a critical blow for an industry that is widely reliant on European tourists and EU-based B2B partners, highlights Foley.
Under EU regulations, such as the Corporate Sustainability Reporting Directive, compliance is being introduced in phases from large to medium to smaller companies across all sectors, she explains.
“For tourism and hospitality, this means that European-based agents and tour operators will soon be legally responsible for reporting the social and environmental performance of their entire downstream supply chains,” Foley says.
For the trade, this translates into growing pressure on operators and DMCs to demonstrate compliance and transparency, which will extend to accommodation providers, activity operators and other suppliers. Non-compliance or ability to deliver measurable and transparent verification from African suppliers could mean the loss of market access while achieving certification through an internationally recognised third-party scheme offers a competitive advantage.
Certifications such a Fair Trade Tourism, The Long Run and Travelife for Tour Operators provide evidence that a business has been independently audited and verified, Foley adds.
She has convened a coalition of regional and international buyers, DMCs and representation companies to work collaboratively despite being competitors.
“The goal is to create a unified industry message that encourages suppliers to pursue credible sustainability certifications and become market-ready. With EU-based companies now required to audit the social and environmental impact of their entire supply chains, no single business has the capacity to manage this complex process alone,” Foley says.
Large companies face immediate pressure due to phased rollouts based on turnover –those with over €450 million (US$524 million) and 1 000 employees must comply first under the Corporate Sustainability Due Diligence Directive. Smaller firms have more time but are not exempt. “It doesn’t matter the size of your company, you need to be compliant,” Foley says.
For big players, fines of up to 5% of annual turnover loom if supply chains fail audits while smaller businesses risk exclusion from EU supply chains, she warns.
Biggest challenges and gaps
Confusion reigns in the certification landscape. Foley identifies “a completely competitive, over-saturated, chaotic sea of noise and confusion” with nearly 40 certification schemes in Africa alone. This fragmentation, compounded by lack of education for stakeholders including tourism boards, DMOs, associations and private sector operators, hinders progress.
Walthers DMC and Authentic Travel Africa CEO Daryl Keywood says compliance is a big burden on small firms.
“It’s a huge ask. It takes probably 10% of our management time and effort to get certified compared to larger corporations with dedicated staff.”
The absence of more clear and simplified EU guidelines further complicates compliance, especially for small businesses lacking human resources.
However, Foley adds, there is consistent agreement among most sustainability experts across Africa and globally that certifications are a competitive advantage but tourism companies, particularly SMMES, will need support and resources for the onboarding process.
Driving change
“My practical message to the trade is simple: if, as a tourism product, you will begin to see more and more of the local and international B2B partners requesting complex social and environmental audits, why not invest all that energy once into becoming certified? Yes, the process requires substantial time and resources upfront but it a gives you third-party verified credibility and streamlines compliance for everyone across the supply chain,” Foley says.
She highlights practical steps businesses such as guesthouses can take to achieve sustainability, emphasising a journey of continual improvement.
“One key action is revamping supply chain procurement. Africa leads the way with creativity and genius upcycling products that have incredible social and environmental positive impact. Imagine furniture, flooring and pool decking made from locally sourced, recycled plastic instead of wood, addressing deforestation and creating local jobs, or serving beverages in glassware crafted from recycled wine and beer bottles by a workshop supporting differently abled individuals creating economic empowerment in rural communities?
“Another example is sourcing honey and soap from local human wildlife conservation projects that use beehives to prevent elephant conflicts, boosting environmental conservation and community benefits. These measurable, context-specific initiatives align with certification standards and provide a credible sustainability narrative for guesthouses.”
Funding is readily available to support small businesses through the certification process, making compliance accessible without financial barriers, Foley stresses. “Cost should absolutely never be a barrier.”
